Pearson Will Reward Patience

The British publisher surprised investors with a big restructuring. But the change is needed now and will pay off.

It would be premature to close the book on Pearson before it reaches its digital potential.

The publisher's shares (ticker: PSON.U.K.) are down 12% from last July's high, but there's at least 20% upside if you're prepared to wait out a 150 million British pound ($230 million) restructuring. The stock closed on Friday at 1,138 pence, and trades at 12.7 times projected earnings...